Telematics can be a powerful tool in managing fleet risks and improving driver safety. In the United Kingdom, employers have clear responsibilities under the Health & Safety at Work Act to manage occupational road-related risks.
As well as giving fleet operators valuable risk insights and potentially helping to reduce the frequency and severity of claims, telematics can also be used to incentivise and reward good driver behaviours and can also be positive for overall company reputation.
There are, however, challenges for fleet operators in understanding the data and in ensuring that the systems they are using are the most suitable for their fleet. Discussions with risk experts can help to proactively manage the data to ensure the fleet are compliant.
Reducing claims
Telematics can play an important role in the claims process, in many cases helping to determine or confirm liability. Dual-facing dash cameras can give especially useful insight as they record data from both inside and outside the vehicle. This clarity can make the claims process more efficient and speedier.
The data gleaned from claims or near-misses can help to inform risk management and feed into driver training, again leading to a potential significant reduction in both the frequency and severity of claims. Figures from telematics software provider, Samsara, uncover customers using telematics platforms have seen reductions of 10–20% in claims costs and 25– 50% in collision rates after adopting technology. If the data is interpreted in a joined-up way it can help to highlight and better understand risky behaviour patterns.
Telematics can feed into risk prevention too, by flagging events in real-time to drivers to help them correct behaviours. With AI alerts that trigger when a driver’s eye movements begin to indicate fatigue, for example, can help to reduce potential collisions. Some technology will send the driver a notification if a warning sign is spotted, enabling the driver to pull over and take a rest or modify the behaviour in question. Indicating risk behaviours prior to a collision occurring, enables fleets to be proactive rather than reactive.
This data can also help employers to fulfil recommendations from the Institute of Occupational Safety & Health that road safety policies should include measures to ensure that journeys are properly planned to avoid tiredness.
Not only can data be used to enhance driver safety and enable employers to better manage work-related road risks, it can also be used to incentivise and reward good driver behaviour.
Communicating the benefits
There has been resistance from some trade unions about the use of telematics in fleet vehicles. Certain workers’ rights bodies have expressed concern that the data collected on individual drivers might be misused or that it could be used against them in disciplinary proceedings, for example.
It is important, therefore, that fleet operators communicate clearly to drivers how data will be used and also about the benefits to them of having telematics in their work vehicles. Involving the unions early and throughout the process can help so they understand the technology and the focus is largely centered on safeguarding the driver.
Not only can data be used to enhance driver safety and enable employers to better manage work-related road risks, such as supporting drivers with claims defensibility if they are not at 'fault' for a collision or highlighting fraudulent attempts whilst in transit to ensure the driver is not held liable.
Rather than simply being used as a way to try to lower insurance premiums, telematics data has the potential to raise standards of driving and improve safety. And having visibility of areas where drivers are performing well can enable employers to reward that behaviour creating a safety culture that puts drivers at the heart of the operation.
Choosing the tech
Telematics can play a powerful role in helping employers to manage driving-related risks and improve safety. But all fleets will have different organisational structures and operational challenges. It is important, therefore, to find a telematics partner that can adapt its systems to the specific needs of the fleet.
All providers calibrate scores differently which can be confusing for a company looking to adopt telematics. The data is only useful if it shows the link with your claims data. If not, it requires a skillset and specialist who has experience of working with telematics to ensure the calibration of the unit is in line with the risks within your business.
And while aggregators can offer a service to help understand different data, this relies upon the data provided being ‘normalised’ and aligned. Issues with data quality can sometimes arise if, for example, a system that uses GPS streaming loses signal. Often a unit that is plugged into an onboard diagnostics port (OBD) would offer greater reliability of data.
We urge clients to lean into the knowledge of their insurer partners to help them to understand whether they have the correct technology capturing data quality and whether they are utilising the data effectively to ensure they remain compliant.
Moving forwards
Investing in telematics systems is a significant expenditure for clients and it’s important that they feel comfortable that the technology they’ve opted for suits their needs. One way to help understand the suitability of a system is to look at the research and development investment made by the telematics provider. This technology is advancing all the time and those providers that are investing are more likely to have systems that adapt and evolve with the needs of the industry.
Talking to industry peers, insurance and risk experts can help employers to get a good sense of what telematics systems might be best suited to their fleet. And tapping into this knowledge can help everyone in the risk chain – from driver to claims professional - better understand how telematics data can be used to manage and prevent risks and promote safe driving behaviours.
Poonam Jivram is an experienced insurance and risk consulting professional, well versed in working closely with regulatory bodies to support policy development, understanding high-risk commercial fleet exposure and developing telematics products. She was appointed Head of Motor Underwriting, UK & Lloyd’s in April 2026.
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Global Asset Protection Services, LLC, and its affiliates (“AXA XL Risk Consulting”) provides risk assessment reports and other loss prevention services, as requested. In this respect, our property loss prevention publications, services, and surveys do not address life safety or third party liability issues. This document shall not be construed as indicating the existence or availability under any policy of coverage for any particular type of loss or damage. The provision of any service does not imply that every possible hazard has been identified at a facility or that no other hazards exist. AXA XL Risk Consulting does not assume, and shall have no liability for the control, correction, continuation or modification of any existing conditions or operations. We specifically disclaim any warranty or representation that compliance with any advice or recommendation in any document or other communication will make a facility or operation safe or healthful, or put it in compliance with any standard, code, law, rule or regulation. Save where expressly agreed in writing, AXA XL Risk Consulting and its related and affiliated companies disclaim all liability for loss or damage suffered by any party arising out of or in connection with our services, including indirect or consequential loss or damage, howsoever arising. Any party who chooses to rely in any way on the contents of this document does so at their own risk.
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